REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority Regarding Stadium Manager’s Request to Execute Agreement with Bonfire Interactive Ltd. for eSourcing Platform Subscription Services and Award Purchase Order to Arata Equipment Company for Arata Compactor Replacement Parts and Repairs
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approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval.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 approval for the following:
• Execute agreement with Bonfire Interactive Ltd. for eSourcing platform subscription services which will be used to solicit bids and proposals. The agreement is for a three-year term and has a not to exceed amount of $39,000 ($13,000 per year for three user licenses). Per the Stadium Manager, the cost for this service will be charged to the FY 2021/22 Budget, Shared Expenses, Stadium Operations line item. Funding for contract years after FY 2021/22 is subject to the Board’s approval as part of the annual budgeting process; and
• Award a purchase order to Arata Equipment Company for Arata compactor replacement parts and repairs in the amount of $4,093. Per the Stadium Manager, the cost for the supplies and services will be charged to the FY 2021/22 Budget, Shared Expenses, Engineering line item.
Chapter 17.30.070 states that, “Except for reserved purchase order numbers assigned by the purchasing officer, the purchasing officer shall not issue any purchase order or award any contract for supplies, materials, or equipment unless there exists an unencumbered appropriation in the proper account of the Stadium Authority to which the purchase is to be charged.” The eSourcing platform subscription services span over multiple fiscal years; however the Stadium Manager stated in their Recommendation for Award memo that the term for subsequent fiscal years shall be conditioned upon approval of the Santa Clara Stadium Authority budget for the applicable fiscal year that includes the amounts under the agreement. The agreement with Bonfire Interactive Ltd. also includes that language.
DISCUSSION
Stadium Authority staff reviewed the Recommendation for Award memo (attached to corresponding report #22-144) and supporting procurement documentation submitted for the requests and sent questions to the Stadium Manager for response. While the supporting documents for the requests were in order, staff requested clarification on the eSourcing platform subscription services. Such exchange of questions is standard practice while reviewing requests for procurement and/or funding.
The Stadium Authority’s questions, and Stadium Manager’s responses are outlined below:
eSourcing Platform Subscription Services (Bonfire Interactive Ltd.)
• Stadium Authority Q1. Can the Stadium Manager describe its current usage of BonFire’s services, and whether the services outlined in the requested agreement differ from the existing services?
Stadium Manager Response to Q1. The scope of services in the Bonfire agreement is similar to the services Bonfire has previously provided. The scope is set forth in the attached RFQ dated 12/13/2021.
Stadium Authority Response: The RFQ is included as part of the questions and responses attachment in corresponding report #22-144. The outlined services are similar to those provided by Periscope Holdings (BidSync) and DemandStar which the City of Santa Clara and Stadium Authority have respective agreements with for similar eSourcing/eProcurement services, although the number of licenses provided by Periscope Holdings and DemandStar differ.
• Stadium Authority Q2. Did the Stadium Manager reach out to any other companies to notify them of the e-Sourcing platform subscription RFQ?
Stadium Manager Response to Q2. Yes. Periscope Holdings, Bonfire Interactive, Biddingo.
Stadium Authority Response: As noted in the Stadium Manager’s Recommendation for Award, only Bonfire Interactive Ltd. and Biddingo responded to the RFQ. Periscope Holdings (BidSync) did not respond to the bid.
There are no additional comments regarding the Stadium Manager’s responses or its request for the Arata compactor parts and repairs. Staff recommends approval of the requested agreement with Bonfire Interactive Ltd. and purchase order with Arata Equipment Company. The Stadium Authority will require full supporting documentation including compliance with prevailing wage laws, if applicable, before respectively releasing public funds upon procurement of the subscription and supplies. 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 actions being considered do 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 or pursuant to CEQA Guidelines section 15378(b)(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 Stadium Authority FY 2021/22 Budget contains a Legal Contingency for Shared Expenses such as Security, Stadium Operations, Engineering, Guest Services, and Grounds. As part of its March 23, 2021 approval of the FY 2021/22 Budget, the Stadium Authority Board delegated budget amendment authority to the Executive Director for Shared Expenses from the Legal Contingency. There are sufficient funds in the FY 2021/22 Stadium Authority Legal Contingency, Stadium Operations line item to cover the annual amount of $13,000 for the eSourcing platform subscription services described in this report and sufficient funds in the FY Stadium Authority Legal Contingency, Engineering line item to cover the amount of $4,093 for the requested Arata compactor parts and repairs described in this report. The Executive Director will approve a budget amendment to reallocate $13,000 from the Legal Contingency to the Shared Expenses, Stadium Operations and $4,093 from the Legal Contingency to the Shared Expenses, Engineering line item upon the Board’s approval of staff’s recommendations. Shared Expenses are split between the Stadium Authority and Stadium Manager per the Management Agreement.
The Stadium Manager’s entire request totals $17,093 for FY 2021/22 and it is noted in the Recommendation for Award memo that the purchase orders’ terms for subsequent years are subject to the approval of the Stadium Authority Board for the applicable fiscal year that include the amounts due under the agreements.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager, Treasurer’s Office and the Chief Assistant City Attorney.
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 to execute an agreement with Bonfire Interactive Ltd. for eSourcing platform subscription services, in the amount of $39,000 over a three-year term, subject to budget appropriations for every fiscal year, 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; and
2. Approve the Stadium Manager’s request to award a purchase order to Arata Equipment Company for Arata compactor replacement parts and repairs in the amount of $4,093, 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: Deanna J. Santana, Executive Director