REPORT TO COUNCIL
SUBJECT
Title
Action to Waive Second Reading and Adopt Ordinance No. 2058 Amending Sections 17.30.040 (“Supplies, Goods and Equipment”), 17.30.080 (“Best Value Selection Procedures”), 17.30.090 (Formal Bidding Procedure”), 17.30.120 (“Service Contracts - Signature Authority”), and 17.30.130 (“Public Works”) of Title 17 (“Development”) of “The Code of the City of Santa Clara, California” to Provide the Executive Director of the Stadium Authority With Signature Authority to Execute For Contracts Up To $100,000 in Allocated Value
Report
BACKGROUND
At the March 7, 2023 Council meeting, proposed Ordinance No. 2058 was passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2058 was published to the Santa Clara Weekly on March 15, 2023, and copies were posted in three public places.
The August 31, 2022 Settlement Agreement and Mutual Release between the Santa Clara Stadium Authority, Forty Niners SC Stadium Company LLC (StadCo), and Stadium Manager provides that Stadium Authority and City staff will recommend for City Council consideration an Ordinance to reinstate the Executive Director’s signature authority to execute contracts that are no greater than $100,000 in value to the Stadium Authority. The Ordinance that is being adopted is intended to comply with Section 5 of the Settlement Agreement.
DISCUSSION
The proposed amendments to Sections 17.30.040 (“Supplies, Goods and Equipment”), 17.30.080 (“Best Value Selection Procedures”), 17.30.090 (Formal Bidding Procedure”), 17.30.120 (“Service Contracts - Signature Authority”), and 17.30.130 (“Public Works”) will 1) remove language that requires Board approval for contracts in any amount, and 2) provide the Executive Director with signature authority to execute contracts for services and public works and to acquire supplies, goods and equipment in an amount up to and including $100,000 as allocated and authorized by the Stadium Authority by adoption of the annual budget. These changes have been coordinated with the Stadium Manager’s Director of Procurement.
Staff has also discussed updating other sections/provisions within Chapter 17.30 with the Stadium Manager’s Director of Procurement to better align the Stadium Authority Procurement Policy with public procurement best practices similar to those in the City’s purchasing code and address existing gaps within the policy (e.g., no competitive process required for services, definition of public works does not comply with City Charter and State requirements, etc.). The Stadium Manager’s Director of Procurement has indicated willingness to work collaboratively with staff in the upcoming months on these updates and provided written confirmation that the Stadium Manager will continue to follow applicable purchasing requirements under SCCC Chapter 2.105 as a best practice, including the bidding thresholds and procurement methods set forth in SCCC 21.105.140, and continue their practice of conducting public works construction/projects as set forth in the City’s Charter Section 1310 as a best practice until a subsequent ordinance that incorporates public procurement best practices is adopted at a later date.
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 changes being proposed in the Ordinance may provide some staff cost savings since staff will no longer have to review and coordinate requests or prepare agenda reports for Board approval for agreements that have an amount up to and including $100,000 as allocated and authorized by the Stadium Authority by adoption of the annual budget.
COORDINATION
This report has been coordinated with the Treasurer’s and Stadium Authority Counsel’s Offices.
PUBLIC CONTACT
A summary of proposed Ordinance No. 2058 was published to the Santa Clara Weekly on March 15, 2023, and copies were posted in three public places and made available for public inspection at the City Clerk’s Office.
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Waive Second Reading and Adopt Ordinance No. 2058 Amending Sections 17.30.040 (“Supplies, Goods and Equipment”), 17.30.080 (“Best Value Selection Procedures”), 17.30.090 (Formal Bidding Procedure”), 17.30.120 (“Service Contracts - Signature Authority”), and 17.30.130 (“Public Works”) of Title 17 (“Development”) of “The Code of the City of Santa Clara, California” to Provide the Executive Director of the Stadium Authority With Signature Authority to Execute For Contracts Up To $100,000 in Allocated Value
Staff
Reviewed by: Sujata Reuter, Stadium Authority Counsel’s Office
Approved by: Stadium Authority Executive Director’s Office
ATTACHMENTS
1. Ordinance No. 2058 (Intro)