REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action Regarding Stadium Manager’s Request to Execute Agreement with Tyson Group, LLC for Stadium Builder’s License (SBL) Sales Training Services
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval. As result of Ordinance No. 2005, the Stadium Manager is also required to request Board approval before entering into agreements on behalf of the Stadium Authority. As of the effective date of the Ordinance (November 8, 2019), all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.
As the Stadium Manager, Forty Niners Stadium Management Company, LLC is responsible for making recommendations to the Stadium Authority with respect to facilitation of a secondary market for SBLs, and marketing, monitoring, and managing SBL agreements as required by the Management Agreement between the Stadium Authority and Stadium Manager.
The Stadium Manager is requesting the following:
• Approval to execute a one-year agreement with Tyson Group, LLC in the amount of $80,000 for SBL sales training professional services for their SBL sales team, with the option to extend for two additional one-year periods.
This service is included in the Stadium Authority FY 2022/23 Operating Budget under the SBL Sales and Services line item. Consistent with Santa Clara Procurement Policy Chapter 17.30.100, the draft agreement includes language stating that the term for any subsequent fiscal years shall be conditioned upon approval of the Stadium Authority budget for the applicable fiscal year that includes the amounts due under the agreement.
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo, supporting documentation, and draft agreement with Tyson Group, LLC. that were submitted (these documents are attached to corresponding report #22-884) for consistency against the Stadium Authority Procurement Policy and Santa Clara City Code Chapter 2.105.330(a)(2).
Out of Levi’s Stadium’s 68,500 seats, 93% have SBLs and the remaining 7% translates into approximately 5,000 remaining seats that SBLs are yet to be sold. SBLs generate significant revenue for the Stadium Authority that is used for debt repayment. SBL Holders can either pay their SBL in full at the time of purchase, pay their SBL in two installments which have no interest, or finance their SBLs over 10 years. The Stadium Authority received $27,279,416 in total from SBL cash receipts for FY 2021/22. There have also been some recent staffing changes within the SBL sales team, and such sales training will benefit the Stadium Authority and the team. The training will occur virtually and onsite and there is no staff travel associated with this request. The training will focus on assessments, group management coaching, sales, and sales leadership.
Based on the documentation provided and the information above, staff recommends approval of the Stadium Manager’s request to execute an agreement with Tyson Group, LLC. Staff also recommends delegating authority to the Executive Director to approve exercising any of the extension options after the first year of the agreement term.
The Stadium Authority will require full supporting documentation including compliance with prevailing wage laws, if applicable, before releasing public funds upon completion of work. This requirement is consistent with the Stadium Authority Board’s March 27, 2019 direction to staff to stop payment of any additional invoices for services unless there is substantial documentation of services rendered which must also be in compliance with State law and City Code.
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
This service is included in the Stadium Authority FY 2022/23 Operating Budget under the SBL Sales and Services line item. The Stadium Authority’s share of the training is expected to be less than the total amount of $80,000 and there are sufficient funds in the budget to cover this cost.
Should the option(s) to extend the agreement for the two additional one-year periods be exercised, those costs would be subject to future budget appropriations.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation:
Approve the Stadium Manager’s request to execute a one-year agreement with Tyson Group, LLC in the amount of $80,000 for SBL sales training services, with the option to extend for two additional one-year periods, subject to budget appropriations; authorize the Executive Director to approve the exercise of any option to extend the agreement for up to two additional one-year periods, subject to budget appropriations; and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager.
Staff
Prepared by: Christine Jung, Assistant to the Executive Director
Reviewed by: Rajeev Batra, Executive Director