REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Report on Actions Taken During City Council Recess period from July 16, 2025, through August 18, 2025
Report
BACKGROUND
On July 15, 2025, the City Council authorized the City Manager, on behalf of the City, as the Executive Director for the Santa Clara Stadium Authority, and as the Contract Administrator for the Sports and Open Space Authority, to approve items vital to the function of the City during the Council official recess from July 21, 2025, through August 15, 2025, during which time, there were no scheduled City Council/Santa Clara Stadium Authority/Sports and Open Spaces Authority/Housing Authority meetings.
This authority would be used in cases where inaction would result in project delays, interruption of services and operations, adverse fiscal impact or in the event of an emergency and to ensure that the City of Santa Clara and public continues to receive uninterrupted services throughout the City Council recess.
DISCUSSION
During the Council recess period from July 16, 2025, through August 18, 2025, the following items were approved by the City Manager and /or Executive Director respectively for the City of Santa Clara and Santa Clara Stadium Authority.
Approved by the City Manager for City of Santa Clara:
1. FY 2025/26 Grant Agreement with Triton Museum of Art
On August 18, 2025. the City Manager executed a Grant Agreement with the Triton Museum of Art (Triton Museum) to provide annual grant funding for FY 2025/26 in the amount of $304,936 (FY 2025/26 Grant Agreement). In return for receiving grant funds, Triton Museum provides art exhibitions, events and educational programs for the City, provides community outreach programs targeted towards art education, provides a qualified staff to serve as a juror for City-sponsored art competitions, among other things, for the term of the agreement (July 1, 2025 through June 30, 2026). This funding was approved by the Council as part of the City’s Biennial FY 2025/26 and 2026/27 Operating Budget.
While grant agreements typically require Council approval, there was prior delegated authority provided for the Triton Museum’s annual grant agreement. On September 11, 2018, the Council authorized the City Manager to execute a Contribution Agreement with Triton Museum of Art, to provide grant funding for FY 2018/19. As part of their action, they also authorized the City Manager to execute future Contribution Agreements in substantially the same form as long as the City had a valid Lease and Operation Agreement with the Triton Museum, subject to annual budget appropriations, and to make minor modifications to the Contribution Agreement if necessary.
The City and Triton Museum have an existing Lease and Operations Agreement, effective as of April 16, 1998 through April 15, 2028. However, at this time, the FY 2025/26 Grant Agreement has been updated to reflect new legal requirements consistent with other City agreements. While the intent of the grant agreement remains the same (i.e., to provide annual grant funding that was approved by City Council specifically for Triton Museum), some may consider the updates to the agreement beyond the delegated authority for minor agreement modifications that was previously authorized by the Council. As such, staff determined that the FY 2025/26 Grant Agreement required the Council’s approval but also recommended moving forward with executing the FY 2025/26 Grant Agreement expeditiously with the Council’s delegation of authority to the City Manager during Council recess to ensure Triton Museum received grant funds for the months of July and August 2025. Staff plans to bring forth next fiscal year’s grant agreement with Triton Museum for Council action with potential delegation of authority to the City Manager to execute future grant agreements with Triton Museum, as long as the City as a valid Lease and Operation Agreement with the Triton Museum of Art, subject to annual budget appropriations, to continue the streamlined distribution of annual grant funds to Triton Museum.
Approved by the Executive Director for Santa Clara Stadium Authority:
1. Award of Contract to Mesa Energy Systems, Inc. for Plumbing - Boilers CapEx Project
On July 19, 2025, the Forty Niners Stadium Management Company LLC (Stadium Manager) submitted a request to the Executive Director to enter into an agreement with Mesa Energy Systems, Inc. for the replacement of two gas-fired domestic hot water heaters and an electronic temperature mixing valve at the field level of Levi’s Stadium (Stadium). The Plumbing - Boilers CapEx Project was carried forward from FY 2024/25 and approved as part of the Stadium Authority FY 2025/26 Capital Expense (CapEx) Budget.
On March 26, 2025, the Stadium Manager issued a Request for Bids (RFB) for the project, which closed on April 23, 2025. The Stadium Manager issued an addendum #1 to the RFB on April 3, 2025. The addendum provided a revision to the deadline for the Request for Clarification. The Stadium Manager issued an addendum #2 to the RFB on April 16, 2025. The addendum provided revisions to the deadlines for the bid due date, bid opening date, and end of protest period. The Stadium Manager subsequently issued an addendum #3 to the RFB on April 25, 2025, which provided a revision to the final deadline to close on April 30, 2025. Four bids were received by the following firms:
• Mesa Energy Systems, Inc. - $654,611.00
• Environmental Systems, Inc. - $702,850.00
• Acco - $790,852.00
• CWS Construction Group, Inc. - $1,175,000.00
As part of his delegated authority during the Council/Stadium Authority Board recess, on August 7, 2025, the Executive Director approved the Stadium Manager’s request to execute and award of a one-time contract to Mesa Energy Systems, Inc. in the amount of $654,611 for the Plumbing - Boilers CapEx Project at Levi's Stadium; authorized the Stadium Manager to execute change orders up to 10% or $65,461.10 for a total not to exceed construction contract amount of $720,072.10; and authorized the Stadium Manager to execute all documents associated with, and necessary for the award, completion, and acceptance of the Project. This approval allowed for timely project initiation prior to the 2025 NFL Season.
2. Budget Amendment for Plumbing - Boilers CapEx Project
The Stadium Manager’s request also included approval of a budget amendment for the Plumbing - Boilers CapEx line item. Specifically, the Stadium Manager requested that the existing $648,764 budget amount be increased by $298,000 from the Capital Budget Ending Fund Balance, bringing the total budget for the project to $946,764. This increase accounts for the costs of both the temporary boiler described below and the full replacement project described above.
By way of background, on July 22, 2024, the Executive Director approved an emergency request from the Stadium Manager to install a temporary domestic boiler at Levi’s Stadium. Under Santa Clara City Code Sections 2.105.260 and 17.30.050, both the City and the Stadium Authority have authority to authorize emergency purchases when required to protect health and safety. The Stadium Authority FY 2024/25 CapEx Budget included $735,000 for the Plumbing - Boilers line item, with $86,236 projected to be spent in FY 2024/25 toward the permanent boiler replacement originally planned for 2025.
However, the existing domestic boiler deteriorated more quickly than anticipated, necessitating an emergency bypass system and the installation of a mobile boiler in case of failure. As part of the Stadium Manager’s emergency request for the temporary boiler, the Executive Director approved an amendment to an existing on-call plumbing and mechanical maintenance and repairs agreement to increase the agreement by $254,922, the estimated cost of the emergency project. At that time, no budget augmentation was required, as sufficient funds were available within the budget line item.
The total estimated cost of the temporary boiler project and the permanent replacement is $1,033,000. This exceeds the original budget allocation for the FY 2025/26 Plumbing - Boilers CapEx Project, requiring an increase of $298,000 to fully fund the project. See tables below:
Table 1: Budget by Fiscal Year
|
FY 2024/25 Budget |
Initial budget allocation for the Plumbing - Boilers CapEx Project, which included planning for the permanent replacement. |
$735,000 |
|
FY 2024/25 Projected Spend |
Amount expected to be used that year toward the replacement. |
$(86,236) |
|
FY 2025/26 Adopted Budget |
Amount carried forward into the next fiscal year. |
$648,764 |
Table 2: Budget Adjustments
|
Original Project BudgetBaseline approved in FY 2024/25$735,000 |
|
|
|
Updated Project Budget |
Combined cost of the temporary boiler plus the full replacement. |
$1,033,000 |
|
Project Budget Augmentation |
Additional funding needed from the Capital Budget Ending Fund Balance to cover the gap. |
$298,000 |
As part of his delegated authority during Council/Board recess the Executive Director approved the Stadium Manager’s request to increase the FY 2025/26 Stadium Authority CapEx Budget line item for the Plumbing - Boilers by $298,000, for a total of $1,033,000. This approval allowed for timely project initiation prior to the 2025 NFL Season.
3. Award for Distribution - High Voltage (Primary Switch Gear (PSG) 12 KV Electrical Power Study, Assessment and Replacement at Quad Substations) CapEx Project
On July 2, 2025, the Executive Director received a request from the Stadium Manager to approve an Amendment No. 2 to the Agreement with Cupertino Electric which would extend the term of the agreement, increase the not-to-exceed compensation amount by $201,910 (equal to the remainder of the approved $525,000 budget amount for the CapEx project), and authorize issuance of a task orders for the Distribution - High Voltage (PSG 12 KV Electrical Power Study, Assessment and Replacement at Quad Substations) CapEx Project at Levi’s Stadium. The Stadium Authority FY 2025/26 CapEx Budget includes a $525,000 budget line item for the project, which includes the cost of testing and inspection as well as an allowance for any necessary repairs, replacements, and/or enhancements identified during the assessment.
The Stadium Manager received three quotes by the following firms:
• Sprig Electric (ArchKey Solutions) - $234,471
• A.S.F Electric, Inc. - $229,000
• Cupertino Electric, Inc. - $201,910
As part of his delegated authority during Council/Board recess, on August 7, 2025, the Executive Director approved the Stadium Manager’s request to 1) approve an Amendment No. 2 to the Agreement with Cupertino Electric to extend the term and increase the not-to-exceed compensation by $525,000, the budgeted amount for this project; 2) authorize the Stadium Manager to enter into task orders for any required repairs or replacement work identified during the testing and inspection process; and 3) authorize the Stadium Manager to execute all documents associated with, and necessary for the award, completion, and acceptance of the project. This approval allowed for timely project initiation/completion prior to the NFL Season.
In the event that additional work is required, the Stadium Manager is authorized to enter into separate task orders with Cupertino Electric under the Amendment No. 2, with the total value of the additional task orders subject to a maximum of $323,090.
4. Approval of Change Order No. 2 for Expansion / Waterproofing / Chaulk Joint Replacements - Phase 2 CapEx Project
On July 14, 2025, the Executive Director received a request from the Stadium Manager to approve execution of a Change Order No. 2 to the public works construction contract with Blue's Roofing Company (Blue's Roofing) to proceed with specified alternate bid items that were part of the FY 2022/23 General Areas/Coatings Main Deck CapEx Project for a lump sum price of $1,311,002.
The project, now retitled Expansion / Waterproofing / Chaulk Joint Replacements - Phase 2, was approved as part of the Stadium Authority FY 2025/26 CapEx Budget with a budget line item of $1,325,625.
By way of background, in 2022, the Stadium Manager conducted a formal RFB for the FY 2022/23 General Areas/Coatings Main Deck CapEx Project. The scope of work in the RFB was split out into multiple base bid items and alternate bid items, which included traffic membrane recoating, joint sealant repair and replacement, and concrete crack repair that bidders priced separately for the major specified stadium areas (i.e. lower bowl, mid-level bowl, upper bowl, and all concourses). Blue’s Roofing was the lowest responsible bidder submitting a responsive bid.
On July 5, 2022, the Stadium Authority Board approved the award to Blue’s Roofing for the base bid scope of work, which covered the lower bowl and the main concourse, at a cost of $2,505,744 and authorized the authorize the Executive Director to approve the issuance and execution of change orders up to $66,383, for a total not to exceed amount of $2,572,127. The Executive Director later approved a Change Order No. 1 for $34,557 for joint sealant work for the lower bowl and main concourse, bringing the total cost to $2,540,301. The requested Change Order No. 2 allows for completion of certain alternate bid items, which constitute the second phase of the traffic membrane work. These alternate bid items will cover traffic membrane recoating for the upper bowl and the upper concourses, along with repairs of joint sealant and concrete cracks in those areas. Blue’s Roofing has agreed to honor the alternate bid item pricing submitted as part of their response to the RFB in 2022. Recognizing that Blue’s Roofing is the lowest responsible bidder submitting a responsive bid, Blue’s Roofing will honor their pricing from three years ago with no increase for cost escalation.
As part of his delegated authority during Council/Board recess, on August 7, 2025, the Executive Director 1) approved the Stadium Manager’s request to execute a Change Order No. 2 to the public works construction contract with Blue's Roofing to proceed with specified alternate bid items that were part of the FY 2022/23 General Areas/Coatings Main Deck CapEx Project, which includes traffic membrane recoating of additional areas along with specified joint sealant and concrete crack repair for a lump sum price of $1,311,002; and 2) authorized the Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of the project. This approval allowed for timely project initiation prior to the 2025 NFL Season.
COORDINATION
This report has been coordinated with all other departments as necessary.
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
Note and file the Report on Actions taken During City Council Recess period from July 16, 2025, through August 18, 2025
Staff
Reviewed by: Maria Le, Assistant to the City Manager, City Manager’s Office
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Resolution 25-9481