REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Stadium Manager’s Request to Execute an Agreement with Staff Pro Inc. d/b/a Allied Universal Event Services for Event Security Services at Levi’s Stadium for a Three-Year Period with the Option to Extend Two Additional One-Year Periods
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As the Stadium Manager of Levi’s Stadium, the Forty Niners Stadium Management Company LLC is responsible for maintaining the Stadium in the required condition and operating it as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility as required by the Stadium Management Agreement between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company LLC (StadCo), and the Stadium Manager.
Event security services are critical to the ongoing operation of Levi’s Stadium and are contracted for both ticketed and non-ticketed events held at Levi’s Stadium. The event security services contractor supports the Stadium Manager’s in-house security operation to ensure compliance with NFL best practices and requirements, and works in partnership with event promoters and production teams to manage security for Non-NFL ticketed events and non-ticketed events as required. Security responsibilities include, but are not limited to, access control, entry screening procedures using both frictionless and non frictionless technology, perimeter security, personal protection, foot patrols, camera monitoring, and other event-specific security functions.
The previous agreement for event security services for Levi’s Stadium was originally approved by the Stadium Authority Board on April 17, 2017, with Landmark Event Staffing Services, Inc. (Landmark) as the original vendor. In March 2023, Allied Universal Security Services Universal Protection Services LPP acquired Landmark and assumed its rights, duties, and obligations under the agreement. With the Stadium Authority Board’s approval, the agreement was amended in March 2024 to extend the term on a month-to-month basis, beginning on April 1, 2024, for up to six months until the Stadium Manager entered into a new agreement for event security services.
On April 16, 2024, the Stadium Manager issued a Request for Proposals (RFP) for event security services that closed on May 15, 2024. The Stadium Manager received six proposals. Through the RFP process, an evaluation committee consisting of subject matters experts from the Stadium Manager and the Santa Clara Police Department reviewed the proposals and selected Staff Pro Inc. DBA Allied Universal Event Services (Allied) as the recommended contractor.
On August 9, 2024, the Executive Director received a request from the Stadium Manager to enter into an interim General Services Agreement with Allied for event security services at Levi’s Stadium through October 31, 2024. The interim General Services Agreement was requested to allow the Stadium Manager to implement new accountability and performance measures for the contractor before the Forty Niners football team’s first 2024 NFL preseason home game at Levi’s Stadium on August 18, 2024. These new measures are designed to ensure enhanced reporting, auditing, and performance outcomes.
Stadium Authority staff and the Santa Clara Police Department reviewed the Stadium Manager’s request and the draft interim General Services Agreement and provided comments to the Stadium Manager. On August 15, 2024, the Executive Director approved the Stadium Manager’s request to enter into the interim General Services Agreement with Allied, effective through October 31, 2024, through delegation of authority from the Stadium Authority Board during the summer recess. The interim General Services Agreement covers event security services for both NFL and Non-NFL events. A copy of the interim General Services Agreement is attached for reference (Attachment 1).
The Stadium Manager is now requesting approval of an Agreement with Allied to provide event security services at Levi’s Stadium for a three-year period, commencing November 1, 2024 and ending on July 31, 2027, with an option to extend for two additional one-year periods (Attachment 2). The proposed Agreement with Allied incorporates various accountability and performance measures for the vendor.
A Recommendation for Award Memo describing the request and the RFP process in more detail was submitted by the Stadium Manager (Attachment 3).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo and supporting RFP documents for consistency with the Santa Clara City Code Chapter 17.30 (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).
The Stadium Manager led the procurement process described in the Recommendation for Award memo and worked in partnership with the Santa Clara Police Department and Stadium Authority to develop the desired scope and services. Guidepost Solutions (Guidepost), a third-party firm contracted by the Stadium Authority, on November 20, 2023, to perform a security and neighborhood impacts assessment of Levi’s Stadium, also reviewed the scope. After the RFP closed, subject matter experts from the Stadium Manager and Santa Clara Police Department participated in the evaluation process that led to the selection of Allied as the recommended proposer.
The proposed Agreement with Allied includes the following key provisions to ensure enhanced reporting, auditing, and performance:
• After Action Reports: The contractor will prepare an After Action Report after every large-scale event.
• Monthly Reports: The contractor may be required to submit monthly reports describing staffing allocations, work performed, work status, work progress, difficulties encountered, remedial actions taken, and performance complaints and violations reported. Performance complaints and violations include, but are not limited to, no call/no show rates, backfill rates and numbers, personnel complaints, violation of policies and procedures by staff members, and violation of uniform dress, appearance standards, and guard card verification.
• Performance Audits: The Stadium Manager has the right to audit the contractor’s performance without notice throughout the performance period.
• Service Level Agreement (SLA): Within 30 days of the agreement’s start date, the contractor must outline their administrative and operations plan as part of the SLA. SLAs are used in ongoing service agreements to outline the commitment between the vendor and client. They include details of the service, the standards the vendor must adhere to, metrics to measure performance, and remedies if the service levels are not achieved. The SLA will include:
o Financial penalties for non-performance identified at events. If the contractor's performance fails to meet the service levels established in the agreement, the financial penalties will remain in effect until those performance issues are resolved.
o A year-end review conducted by the Stadium Manager following the completion of the first year of the agreement term, with the results provided to the contractor. If the contractor’s performance is deemed by the Stadium Manager to be below the standards specified in the agreement, including the SLA, the Stadium Manager may treat contractor’s substandard performance as a material breach of the agreement and may proceed with termination following notice and an opportunity to cure within the time specified and in accordance with the procedures set forth in Section 13 of the agreement.
The costs associated with the agreement are based on the compensation and fees schedule outlined in Exhibit B of the agreement. Fixed hourly rates are established for each labor category and are subject to an annual escalation. Rate increases for Years Two and Three are capped at 2.5% increase of the standard hourly rate each year. The compensation and fees schedule also establishes overtime (between 8-12 hours worked) and holiday rates which are capped at $2 extra over the standard hourly rate for Year One and 1.3 times the standard hourly rate for Years Two and Three. For hours worked beyond 12 hours, double time over the standard hourly rate will apply. Rates for any extensions will be subject to mutual written agreement between the Stadium Manager and Allied.
The agreement does not include a not to exceed amount due to the unknown number of Non-NFL events per contract year that will require event security services; however, each Non-NFL event will be subject to the rates outlined in the agreement. For context, approximately $1.89M was expended in FY 2022/23 and $2.37M was expended in FY 2023/24 on Landmark and Allied’s respective event security services for Non-NFL events under the prior event security agreement.
Based on the documentation provided, staff recommends approval of the Stadium Manager’s request to execute an agreement with Allied for event security services at Levi’s Stadium for a three-year period with the option to extend for two additional one-year periods. Staff also recommends authorizing the Stadium Manager to execute the SLA described in Exhibit A of the agreement, in a form approved by the Stadium Authority Counsel, and to exercise the option to extend the agreement with the same basic terms and conditions for two additional one-year periods if the associated costs have been approved by the Board in the Stadium Authority Operating Budget for the respective fiscal year. Should rate increases be proposed for any extensions, staff recommends that they be limited to 6% annually or otherwise subject to approval by the Stadium Authority.
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 does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The Stadium Authority is responsible for all Non-NFL Events costs, including the event security costs for Non-NFL events which are charged directly to the events. StadCo is responsible for NFL event security costs.
There are sufficient funds in the Stadium Authority FY 2024/25 Operating Budget, allocated as part of the Net Revenues from Non-NFL Events line item to cover the initial year’s costs. As noted above, approximately $1.89M was expended in FY 2022/23 and $2.37M was expended in FY 2023/24 on Landmark and Allied’s respective event security services for Non-NFL events under the prior event security agreement.
Funding for future years will be included in future proposed budgets through the budget process.
COORDINATION
This report has been coordinated with the City’s Police Department and the Stadium Authority Counsel and Treasurer’s Offices.
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:
1. Approve the Stadium Manager’s request to execute an agreement with Staff Pro Inc. DBA Allied Universal Event Services for event security services at Levi’s Stadium, for a three-year period, commencing November 1, 2024 and ending on July 31, 2027, with an option to extend for two additional one-year periods, in a form approved by the Stadium Authority Counsel, and subject to budget appropriations;
2. Authorize the Stadium Manager to execute the Service Level Agreement described under Exhibit A of the agreement with Staff Pro Inc. DBA Allied Universal Event Services, in a form approved by the Stadium Authority Counsel; and
3. Authorize the Stadium Manager to exercise the option to extend the agreement with the same terms and conditions for two additional one-year periods, subject to budget appropriations and after consultations with the Stadium Authority Executive Director. Stadium Manager is not authorized to exercise an option to extend the term of the Agreement if such extension includes an increase to the compensation and fees set forth in Exhibit B in excess of 6% annually without the express written approval of the Stadium Authority Executive Director.
Staff
Reviewed by: Chuck Baker, Assistant Executive Director
Reviewed by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Interim General Services Agreement with Allied
2. Stadium Manager’s Recommendation for Award Memo
3. Proposed Agreement with Allied