REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Agreements with Devcon Construction, Inc., SC Builders, Inc., and Rudolph Commercial Interiors, Inc. for On-Call General Contractor Services at Levi’s Stadium, Limiting Authorization to Spend to a Total Aggregate Not-to-Exceed Amount of $1,506,408, Inclusive of All Contract Years and Contingency, Across All Three Agreements, and Delegated Authority for Future Amendments
Report
BACKGROUND
Pursuant to Section 2.9 of the Stadium Management Agreement between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company LLC (StadCo), and Forty Niners Stadium Management Company LLC (Stadium Manager), the Stadium Manager is responsible for maintaining Levi’s Stadium (Stadium) “in the Required Condition and operate it as a high-quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility…”
Due to the size, age, and complexity of Levi’s Stadium and its building systems, the Stadium Manager has identified the need to establish a pool of qualified general contractors to provide repair, maintenance, and restoration services on an on-call, as-needed basis.
Historically, the Stadium Manager has not maintained on-call agreements with general contractors for these services. However, the Stadium Manager expects the need for repair and maintenance to increase as the facility continues to age. To address this need, the Stadium Manager recommends having general contractors available that are uniquely positioned to coordinate multiple trades, which is critical for responding to incidents such as fire damage, water intrusion, or other conditions requiring immediate attention. Without this capability, the Stadium Manager would need to procure multiple trade providers, which could delay response times and increase the risk of further damage and operational disruption.
On August 18, 2025, the Stadium Manager issued a Request for Proposals (RFP) to solicit qualified and licensed general contractors to provide on-call repair, restoration, and maintenance services at Levi’s Stadium. Five proposals were received by the submission deadline from the following firms:
1. City Building, Inc.
2. Devcon Construction, Inc.
3. Nation Restoration
4. Rudolph Commercial Interiors, Inc.
5. SC Builders, Inc.
An Evaluation Committee reviewed the proposals based on the criteria established in the RFP. Nation Restoration was deemed non-responsive and excluded from further consideration. The remaining four firms met the minimum qualifications.
Following the evaluation, Devcon Construction, Inc., Rudolph Commercial Interiors, Inc., and SC Builders, Inc. (collectively, the “Vendors”) were determined to be within the competitive range and best qualified to perform the services. The Stadium Manager subsequently negotiated rates and cost structures with each vendor, including labor rates and markups for materials, equipment, subcontractors, and related costs. Through approval of the requested actions for this agenda item, the Stadium Manager would establish a pool of pre-qualified contractors, enabling the Stadium Manager to issue task orders on an as-needed basis to ensure timely and efficient delivery of services.
As such, the Stadium Manager is requesting Stadium Authority Board (Board) approval of the following actions for three master service agreements for on-call repair, restoration, and maintenance services:
1. Approve and authorize the Stadium Manager to enter into agreements with Devcon Construction, Inc., SC Builders, Inc., and Rudolph Commercial Interiors, Inc. (Attachments 1, 2, and 3) to provide on-call as-needed repair, restoration, and maintenance services on various system components at Levi’s Stadium for an initial term of three (3) years commencing upon execution of the agreements, and expiring March 31, 2029, with two (2) optional one-year extensions through March 31, 2031. The total aggregate amount payable under all agreements shall not exceed $250,000 per contract year, $750,000 over the initial three-year period, and $1,250,000 over the maximum five (5) year term unless modified pursuant to Recommendation 3 below. The term for each fiscal year is contingent on the Board approving the applicable fiscal year's budget, including amounts due under the Agreements.
2. Approve a contingency in the amount of one hundred twenty-five thousand dollars ($125,000), which is equal to ten percent (10%) of the aggregate total not-to-exceed value of the baseline amount payable under all Agreements over the maximum five (5) year term of the Agreements (i.e., $250,000 per year x 5 years). The contingency may be used to increase the not-to-exceed amount of any Agreement during any contract year, as needed to cover unforeseen services, subject to budget appropriations.
3. Authorize the Stadium Authority Executive Director to approve future amendments as needed to: (a) exercise the option to extend the Agreements by two (2) one-year extension periods through March 31, 2031, and to establish the not-to-exceed amount for each extension period of $250,000 to cover services during each extension; (b) increase the rates in contract years two through five (April 1, 2027 - March 31, 2031) by up to five percent (5%) over the previous year’s rates in accordance with the terms and conditions associated with rate increases in Exhibit G of the Agreements; (c) increase the not-to-exceed amount payable under each Agreement by up to five percent (5%) over the previous year's amount to account for rate increases, subject to budget appropriations; and (d) increase the not-to-exceed amount of any Agreement during any contract year using contingency funds as needed to cover unforeseen services, subject to budget appropriations. The aggregate total not-to-exceed value of amounts payable under all Agreements over the five (5) year term, inclusive of all contract years and contingency, shall not exceed $1,506,408 (see Table 1 below for more details).
4. Authorize the Stadium Manager to issue and execute task orders to the three contracting firms, up to the aggregate not-to-exceed amount for each contract year, subject to budget appropriations.
A Recommendation for Award Memo was submitted by the Stadium Manager describing the services, solicitation process, and the request in more detail (Attachment 4).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo and supporting documents for consistency with the Stadium Authority Procurement Policy and Santa Clara City Code Chapter 2.105.140(c) (Competitive requirements for purchases - Formal requests for proposals for agreements with an amount over $250,000). As described above and in the Stadium Manager’s Recommendation for Award memo, the Stadium Manager implemented an RFP process and received five (5) proposals, and through the evaluation and subsequent negotiations process is recommending award of agreements with three vendors (Devcon Construction, SC Builders, and Rudolph Commercial Interiors) for on-call services.
While there will be three agreements, the Stadium Manager is proposing an annual not-to-exceed amount of $250,000 for contract year one, applied on an aggregate basis, which may increase annually by up to 5% if the Stadium Authority Board approves the Stadium Manager’s request. The Agreements include provisions allowing for annual rate adjustments of up to 3%; however, rate adjustments may increase by up to 5% in contract years two through five (April 1, 2027 through March 31, 2031) if applicable prevailing wage rate increases exceed 3%. The rate adjustment provisions reflect anticipated increases in labor costs, including union wage and benefit adjustments established through collective bargaining agreements. The Agreements include hourly rates for straight-time weekday, daily overtime, Saturday, and Sundays and holidays and additional costs.
The chart below summarizes the projected costs over the five-year term of the Agreements, assuming a five percent (5%) rate increase for contract years two through five.
Table 1 - Cost Summary
|
Description |
“Combined” NTE |
|
Year 1 (4/1/26-3/31/27) |
$250,000 |
|
Year 2 (4/1/27-3/31/28) + 5% increase |
$262,500 |
|
Year 3 (4/1/28-3/31/29) + 5% increase |
$275,625 |
|
Year 4 (4/1/29-3/31/30) + 5% increase |
$289,406 |
|
Year 5 (4/1/30-3/31/31) + 5% increase |
$303,877 |
|
Contingency (10% of Total Agreement Amount) |
$125,000 |
|
Total Not-to-Exceed Maximum Compensation |
$1,506,408 |
These Agreements do not guarantee a minimum amount of work. Services will be authorized on an as-needed basis through task orders issued by the Stadium Manager within the approved budget.
After reviewing the request and supporting documents, staff discussed the following topics with the Stadium Manager and was provided further clarification on the process for awarding work between the three vendors, performance and payment bonds, and geographical requirements in the RFP.
Based on the documentation and information provided, staff recommends approval of the Stadium Manager’s requests and authorizing additional delegation to the Stadium Manager to execute amendments to the Agreements as approved by the Stadium Authority Executive Director.
The Stadium Authority Counsel’s Office has reviewed the Agreements for comparison to the Stadium Authority’s customary language. Nothing in the Agreements changes 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.
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 is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of repair, maintenance, and restoration of existing public or private facilities involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
The total aggregate amount payable under all three agreements shall not exceed $1,506,408 over the entire agreement term, inclusive of the two option years and contingency.
The Stadium Authority Fiscal Year (FY) 2026/27 Budget includes Shared Stadium Expenses, such as Security, Stadium Operations, Engineering, Guest Services, and Groundskeeping. In accordance with the Stadium Lease, most Shared Stadium Expenses are allocated 50/50 between the Stadium Authority and StadCo.
There are sufficient funds in the FY 2026/27 Shared Stadium Expenses Engineering line item to cover the Stadium Authority’s fifty percent (50%) share of contract year one’s total aggregate not-to-exceed amount of $250,000 and the $125,000 contingency (up to $125,000 plus an additional $62,500 for contingency).
The term for subsequent fiscal years is conditioned upon approval of the Stadium Authority budget for the applicable fiscal year that includes the amounts due under the agreement as required under Santa Clara City Code Section 17.30.100. The Stadium Authority's cost allocation for the remaining contract years are as follows: up to $131,250 plus 50% of the remaining contingency for contract year two, up to $137,813 plus 50% of the remaining contingency for contract year three, up to $144,703 plus 50% of the remaining contingency for contract year four, and up to $151,939 plus 50% of the remaining contingency for contract year five.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel and Treasurer’s Office.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the Stadium Manager to enter into agreements with Devcon Construction, Inc., SC Builders, Inc., and Rudolph Commercial Interiors, Inc. to provide on-call as-needed repair, restoration, and maintenance services on various system components at Levi’s Stadium for an initial term of three (3) years commencing upon execution of the Agreements, and expiring March 31, 2029, with two (2) optional one-year extensions through March 31, 2031. Stadium Manager’s authority to spend under the agreements is limited to a total aggregate amount payable under all agreements shall not exceed $250,000 per contract year, $750,000 over the initial three-year period, and $1,250,000 over the maximum five (5) year term unless modified pursuant to Recommendation 3 below. The term for each fiscal year is contingent on the Stadium Authority Board approving the applicable fiscal year's budget, including amounts due under the Agreements;
2. Approve a contingency in the amount of $125,000, which is equal to ten percent (10%) of the aggregate total not-to-exceed value of the baseline amount payable under all Agreements over the maximum five (5) year term of the Agreements (i.e., $250,000 per year x 5 years). The contingency may be used to increase the not-to-exceed amount of any Agreement during any contract year, as needed to cover unforeseen services, subject to budget appropriations;
3. Authorize the Stadium Authority Executive Director to approve future amendments as needed to: (a) exercise the option to extend the Agreements by two (2) one-year extension periods through March 31, 2031, and to establish the not-to-exceed amount for each extension period of $250,000 to cover services during each extension; (b) increase the rates in contract years two through five (April 1, 2027 - March 31, 2031) by up to five percent (5%) over the previous year’s rates in accordance with the terms and conditions associated with rate increases in Exhibit G of the Agreements; (c) increase the not-to-exceed amount payable under each Agreement by up to five percent (5%) over the previous year's amount to account for rate increases, subject to budget appropriations; and (d) increase the not-to-exceed amount of any Agreement during any contract year using contingency funds as needed to cover unforeseen services, subject to budget appropriations. The aggregate total not-to-exceed value of amounts payable under all Agreements over the five (5) year term, inclusive of all contract years and contingency, shall not exceed $1,506,408; and
4. Authorize the Stadium Manager to execute amendments to the Agreements as approved by the Stadium Authority Executive Director, and issue and execute task orders to the three contracting firms, up to the aggregate not-to-exceed amount for each contract year, subject to budget appropriations.
Staff
Reviewed by: Christine Jung, Deputy City Manager
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Draft Agreement with Devcon Construction, Inc.
2. Draft Agreement with Rudolph Commercial Interiors, Inc.
3. Draft Agreement with SC Builders, Inc.
4. Stadium Manager’s Recommendation Memo