REPORT TO COUNCIL
SUBJECT
Title
Action on a Standard Agreement with the California Highway Patrol for Traffic Management Related Services with a Projected Cost of $1.6 million for FIFA World Cup and Approve the Related Budget Amendment
Report
BACKGROUND
The California Highway Patrol (“CHP”) has acted as a partner agency, providing necessary supplemental law enforcement services at Levi’s Stadium events, since 2014, pursuant to various agreements approved by the City Council. On June 25, 2024, the City Council and Stadium Authority Board approved a standard agreement with the California Highway Patrol for traffic management and support services for special events held at Levi’s Stadium. CHP duties include traffic management, air operations, SWAT, bicycle patrol, crowd control, and other law enforcement duties, including but not limited to fixed or mobile positions, for which CHP bills the City according to the hourly rates listed in the agreement. The term of the agreement is July 1, 2024 through June 30, 2028, and has a not-to-exceed limitation of $5 million. The costs associated with CHP’s services at the Stadium are required to be reimbursed to the City in accordance with Measure J.
As stated in the Agenda Report supporting the 2024 agreement with the CHP (Attachment 1), the parties contemplated a separate, stand-alone agreement with the CHP for services provided in connection with the Super Bowl and FIFA World Cup. On January 13, 2026, the City Council approved an agreement with the CHP for Traffic Management Services related to Super Bowl LX (Attachment 2).
The proposed agreement for services provided in connection with FIFA World Cup has a scope of work as follows, “The Contractee, City of Santa Clara agrees to reimburse the Department of California Highway Patrol (CHP) for costs associated with traffic control related services for 2026 Fédération Internationale de Football Association (FIFA) World Cup events at the Levi’s Stadium provided by the CHP San Jose Area office.” The term of this new agreement is for June 2, 2026 - July 2, 2026, with a maximum compensation of $4,806,520.92 (Attachment 3). As described below, the actual expected expense associated with the CHP services for this period are much lower than the maximum compensation figure stated in the agreement.
DISCUSSION
As the lead law enforcement agency, the Police Department secures local, State, and Federal resources, as necessary, to implement security measures, and corresponding contingency plans, in anticipation of the events currently planned at Levi’s Stadium. This includes, but is not limited to, mitigating traffic congestion for event patrons and local traffic, providing a safe venue for attendees, performers, and stadium personnel as well as preventing intrusion into neighborhoods while maintaining access to adjacent business properties. The Police Department is the lead in obtaining the necessary approvals required to enter into agreements with law enforcement partners.
The CHP has been an essential public safety partner in the implementation of traffic management and event plans for Levi’s Stadium events. Since 2014, CHP has provided vehicles, radios, personnel, and other necessary equipment for traffic management and related support services on Highway 101 and Route 237, in which they have jurisdiction over. In addition, CHP is instrumental in helping the Police Department obtain threat intelligence information.
The number of CHP personnel necessary to implement the plans varies according to the event type, day and time, anticipated attendance, dignitaries present, intelligence gathered, and potential threat(s). The standard agreement terms require compensation to be paid according to a CHP hourly employee cost (e.g., salary, benefits, overhead, etc.) from their home station to their return to the home station, including mileage. Air support services are anticipated for FIFA World Cup events.
The not to exceed amount under the agreement includes contingency capacity for the maximum deployment of CHP personnel and resources that could be made available by CHP to support public safety operations associated with FIFA World Cup events, even though current operational planning anticipates only a limited deployment. While CHP support will be used for event operations, deployment levels will be based on operational needs, threat assessments, intelligence, attendance, traffic conditions, and other public safety considerations. At present, it is estimated that $1.6M will be utilized under this contract for services related to FIFA World Cup events. The maximum staffing levels and associated costs ($4.8M) represent an upper-limit contingency and are not expected to be fully utilized but instead provide operational flexibility should additional resources become necessary for crowd management, traffic control, incident response, roadway safety, or other law enforcement functions.
As noted in the Fiscal Impact section of this report, the services to be provided by the California Highway Patrol qualify as event-related governmental services under the FIFA World Cup 2026 Assignment and Assumption Agreement. Pursuant to the terms of the agreement, the Bay Area Host Committee is responsible for reimbursing the City and Stadium Authority for all costs incurred in connection with event planning, preparation, and operations, including public safety personnel and mutual aid resources. Estimated costs associated with CHP services have been incorporated into preliminary event cost projections, with additional specialized services (e.g., air support) subject to ongoing coordination and refinement. This reimbursement framework is consistent with the approach previously approved by the City Council for Super Bowl LX and is anticipated to result in no net fiscal impact to the City, subject to final cost reconciliation and reimbursement.
The differences between the 2024 Agreement with the CHP and the proposed Agreement for FIFA World Cup are as follows:
• The short notice cancellation fee increased from $50 to $150.
• All hourly rates increased by an average of 9%, except (1) the airplane rate decreased significantly (from $850.62/hr. to $739.96/hr.), and (2) the Motorcycle Sgt rate is unchanged. Additionally, the hourly rate of a Motorcycle Officer ($140.15/hr.) was added.
• The General Terms and Conditions (“GTC”) has been updated by the State to GTC 2/2025 from the prior version (GTC 4/2017) but the only substantive difference in the new 2025 GTC is that the state has added a generative AI disclosure obligation that requires the City to disclose if we plan to use AI with regard to CHP’s performance of services (we do not).
The difference between the Super Bowl LX agreement and the proposed agreement for FIFA World Cup is the addition of the Motorcycle Officer rate ($140.15/hr.).
The indemnity obligation, highlighted in the 2024 Agenda Report, remains unchanged. The terms and conditions of the agreement are not negotiable.
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
As mentioned in the staff report, while the maximum compensation of the agreement is $4,806,520.92, staff does not anticipate this level of costs. Based on current planned deployment, the Department estimates approximately $1.6 million of CHP services for the FIFA World Cup events. As part of the development of the FY 2025/26 and FY 2026/27 Adopted Operating Budget, $0.5 million was initially appropriated in FY 2025/26. Staff recommends increasing the budget to align with anticipated activity as detailed in the table below.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Revenue |
|
|
|
|
Other Fees for Services |
$59,445,453 |
$1,100,000 |
$60,545,453 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Non-Departmental |
$40,484,838 |
$1,100,000 |
$41,584,838 |
The services to be provided by the California Highway Patrol qualify as event-related governmental services under the FIFA World Cup 2026 Assignment and Assumption Agreement. Pursuant to the terms of the agreement, the Bay Area Host Committee is responsible for reimbursing the City and Stadium Authority for all costs incurred in connection with event planning, preparation, and operations, including public safety personnel and mutual aid resources. Estimated costs associated with CHP services have been incorporated into preliminary event cost projections, with additional specialized services (e.g., air support) subject to ongoing coordination and refinement. This reimbursement framework is consistent with the approach previously approved by the City Council for Super Bowl LX and is anticipated to result in no net fiscal impact to the City, subject to final cost reconciliation and reimbursement.
If additional CHP services are needed beyond the budgeted amount, staff will bring forward a budget amendment at the June 23rd City Council meeting.
COORDINATION
This report was coordinated with the Finance Department and the City Attorney’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. Authorize the City Manager to execute the Standard Agreement with the California Highway Patrol for traffic control related services for FIFA World Cup at Levi’s Stadium, in an amount not to exceed $4,806,520.92 over the period June 2, 2026 - July 2, 2026; and
2. Approve the FY 2025/26 budget amendment in the General Fund, increasing the Other Fees for Services estimate by $1,100,000 and increasing the Non-Departmental appropriation by $1,100,000 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Cory Morgan, Chief of Police
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Agenda Report and attachments for 2024 Agreement with CHP (24-191)
2. Agenda Report and attachments for 2026 Agreement with CHP for Super Bowl LX (26-51)
3. Proposed Agreement with CHP for services provided in connection with FIFA World Cup