REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Amendment No. 5 to the Agreement with Bear Electrical Solutions, LLC for On-Call Electrical Maintenance and Repair Services at Levi’s Stadium to Extend the Agreement for Up to Six Months
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 the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility….”
As described in an April 20, 2021 report to the Stadium Authority Board (Board), the Stadium Manager conducted a Request for Proposals (RFP) process for electrical and maintenance repair services for the Stadium. Four proposals were received and after the evaluation process, Bear Electrical Solutions, Inc. and Cupertino Electric, Inc. were selected as the most competitive and responsive bidders to perform the required scope of work. The Stadium Manager recommended award to both vendors for the purpose of having master agreements in place for electrical and maintenance repair services and planned to use the vendors for specific task orders and award work based on responsiveness, availability, cost, and expertise. On April 20, 2021, the Stadium Authority Board approved the Stadium Manager’s request to execute agreements with both vendors to perform electrical maintenance and repair services at Levi’s Stadium.
The Agreement with Bear Electrical Solutions, Inc., now operating as Bear Electrical Solutions, LLC, (Agreement) (Attachment 1) included an initial term of three years with the option to extend for two additional one-year periods, in an amount not to exceed $250,000 per contract year, for a total not to exceed amount of $750,000 over the three-year period beginning May 5, 2021 through May 4, 2024.
The Stadium Authority Board approved subsequent requests from the Stadium Manager to execute 1) Amendment No. 1 to the Agreement to increase the not to exceed amount from $250,000 to $500,000 for the first year of the agreement term, for a total not to exceed amount of $1,000,000 over the initial three-year term, to cover costs associated with the Levi’s Signage Repairs CapEx Project; 2) Amendment No. 2 to the Agreement to increase the not to exceed amount for the second year of the agreement term from $250,000 to $670,000, for a total not to exceed amount of $1,420,000 over the three-year term, to cover costs associated with the Levi’s Naming Rights Existing Signage Lighting and Driver Repair CapEx Project; 3) Amendment No. 3 to the Agreement to extend the term through May 4, 2025, with an option to extend for one additional year, in an amount not to exceed $350,000 for the fourth contract year and a total not to exceed amount of $1,770,000 over the four-year term; and 4) Amendment No. 4 to the Agreement to extend the term through May 4, 2026, in an amount not to exceed $250,000 for the fifth contract year, and to increase the not to exceed amount to $2,020,000 over the five-year term. The agreement amendments are attached to the report as Attachments 2, 3, 4, and 5.
The Stadium Manager is finalizing a formal competitive solicitation process for on-call electrical maintenance and repair services. At the time of submitting the request, negotiations with vendors were in process and the Stadium Manager anticipated submitting a recommendation of award in March.
To ensure continuity of services and sufficient time for transition, the Stadium Manager is requesting approval to execute an Amendment No. 5 to the Agreement to extend the agreement term on a month-to-month basis, for up to six months, commencing on May 5, 2026 (Attachment 6).
A recommendation memo was submitted describing the Stadium Manager’s request in more detail (Attachment 7).
DISCUSSION
The Stadium is a 1.8 million square foot facility that utilizes complex electrical systems that require a contractor’s expertise, on-call, and as-needed services to provide the required maintenance and repair of the electrical components throughout the Stadium. These services include repairing power connections for equipment, replacing circuit breakers, troubleshooting electrical malfunctions, and testing and repairing various electrical systems. This vendor also provides similar services on the low-voltage systems at the stadium, such as device controls and communications. There is a continued need for these services from a contractor capable of handling the wide range of electrical repairs and maintenance required for the Stadium.
The Agreement included an initial term of three years with the option to extend for two additional one-year periods. The Stadium Manager exercised both options through Amendment Nos. 3 and 4 to the Agreement and is now requesting approval of an Amendment No. 5 that will extend the agreement on a month-to-month basis, not to exceed six months, commencing on May 5, 2026, to allow sufficient time to complete their formal procurement process, finalize the contract, and transition service providers. The proposed extension language also allows the Stadium Manager to terminate the agreement within thirty (30) calendar days with written notice to the vendor.
The Stadium Manager has determined that the contract amount of $250,000 for the fifth contract year is sufficient to cover both the remaining term and the proposed extension, so the total not to exceed agreement amount will remain the same. All billable rates under the agreement remain the same. Exhibit G-3 only modifies the rate schedule period to include a new termination date of November 4, 2026, which reflects the six-month extension.
Based on the information above and review of the Stadium Manager’s request, staff recommends approval of the Stadium Manager’s request to execute an Amendment No. 5 to the Agreement as described to ensure continuity of electrical maintenance and repair services at Levi’s Stadium.
The Stadium Authority Counsel’s Office has reviewed the Amendment No. 5 to the Agreement for comparison to the Stadium Authority’s customary language. Nothing in the proposed Amendment No. 5 or Agreement 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
As the lead agency, the City has determined that the proposed agreement meets the California Environmental Quality Act (“CEQA”) exemption criteria as set forth in Section 15301 (Class 1-Existing Facilities) because the project consists of the operation, repair, maintenance and minor alterations of existing public facilities and mechanical equipment, involving no expansion of use.
FISCAL IMPACT
The proposed Amendment No. 5 does not change the total not to exceed agreement amount of $2,020,000.
The Stadium Authority Fiscal Year (FY) 2026/27 Budget contains Shared Stadium Expenses such as Security, Stadium Operations, Engineering, Guest Services, and Groundskeeping. Shared Stadium Expenses are split 50/50 between the Stadium Authority and StadCo per the Stadium Lease. There are sufficient funds in the FY 2026/27 Shared Stadium Expenses Engineering line item to cover the Stadium Authority’s fifty percent (50%) of the Shared Stadium Expenses portion of the agreement cost for the six-month extension (up to $125,000).
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.
RECOMMENDATION
Recommendation
Approve the Stadium Manager’s request to execute an Amendment No. 5 to the Agreement with Bear Electrical Services, LLC to extend the term of the agreement on a month-to-month basis, not to exceed six months, commencing on May 5, 2026, in an amount not to exceed $250,000 for the fifth contract year and the month-to-month extension and a total not to exceed amount of $2,020,000 for the entire term of the Agreement.
Staff
Prepared by: Christine Jung, Deputy City Manager
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Agreement with Bear Electrical Solutions
2. Amendment No. 1 to the Agreement with Bear Electrical Solutions
3. Amendment No. 2 to the Agreement with Bear Electrical Solutions
4. Amendment No. 3 to the Agreement with Bear Electrical Solutions
5. Amendment No. 4 to the Agreement with Bear Electrical Solutions
6. Draft Amendment No. 5 to the Agreement with Bear Electrical Solutions
7. Stadium Manager’s Recommendation Memo