REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Stadium Manager’s Request for Approval of an Agreement with AMS Electric LLC dba Prime Electric LLC to Replace the Lighting Systems at Levi’s Stadium (Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting CapEx Project) and Related Budget Amendment
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As the Stadium Manager, Forty Niners Stadium Management Company, LLC is responsible for maintaining “the Stadium in the Required Condition and operate the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility” as required by the Stadium Management Agreement between the Stadium Authority and Stadium Manager.
The Stadium Authority Fiscal Year (FY) 2024/25 Capital Expense (CapEx) Budget includes $4,725,000 for a Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting line item. The project, as described, replaces the current metal halide Stadium field/sports lights with an outdoor LED lighting product. The current system is over ten years old. This project will replace the aging system as it reaches the end of life. Sourcing replacement parts and metal halide lamps is becoming more difficult because most similar-sized venues, including 27 of the 30 NFL venues and 27 of the 30 MLB stadiums, have transitioned to an LED lighting system.
The Stadium’s Lighting Systems is one of the largest energy consuming systems in the Stadium. Replacing the current lighting with an outdoor LED lighting product will lower energy consumption, extend the system’s operational life, require less maintenance, and decrease the carbon footprint by up to 40%. LED field lights provide an energy-efficient solution to upgrade the product that may soon be phased out. LED lights also last much longer and require less maintenance than metal halide lights.
The Stadium Manager is requesting approval for the following actions related to the Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting CapEx Project:
1. Award a one-time agreement to AMS Electric LLC dba Prime Electric LLC, in the amount of $4,736,475 to replace the lighting systems with an outdoor LED retrofit of the sports lighting at Levi’s Stadium;
2. Approve a budget amendment to increase the total budget amount for this CapEx project by $414,631, from $4,725,000 to $5,139,631;
3. Authorize the Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of the project; and
4. Authorize the Stadium Manager to execute change orders up to $236,824 for a total not to exceed construction agreement amount of $4,973,299.
If approved, the amended line item will cover the costs of the one-time agreement ($4,736,475), a 5% contingency for change orders ($236,824), San Jose Mercury News publication fee ($387), estimated permit fees ($44,757), and design services through a Stadium Authority Board approved agreement ($121,188).
A Recommendation for Award Memo was submitted describing the project, solicitation process, and Stadium Manager’s request (Attachment 1).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo, supporting documentation, and draft agreement (Attachment 2) for consistency against the City’s public works bidding practices (City Charter Section 1310). The Stadium Manager’s Request for Bids (RFB) received four responses and the Stadium Manager is recommending award to the lowest responsive and responsible bidder, AMS Electric LLC dba Prime Electric LLC.
Based on the documentation and provided information, staff recommends approval of the Stadium Manager’s request related to the Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting CapEx Project.
The Stadium Authority Counsel’s Office has reviewed the requested agreement for comparison to the Stadium Authority’s customary language. While there are some differences in the language, including portions covering compliance with laws such as prevailing wage and conflict of interest, the agreement submitted here for approval contains the necessary language which identifies these legal obligations to the vendor. The vendor expressly agrees to adhere to such obligations upon its execution of the agreement. Nothing in the proposed agreement changes the Stadium Authority’s rights under the Management Agreement and specifically with respect to any dispute that may arise from the Stadium Manager’s obligations under the Management Agreement.
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
As noted above, the FY 2024/25 CapEx Budget contains $4,725,000 for the Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting CapEx Project.
Approval of the Stadium Manager’s request will require a budget amendment to increase the line item by $414,631 to a total budget amount of $5,139,631. The improvements are for shared spaces, these capital expenditures are 100% Stadium Authority costs. The table below summarizes the budget amendment as discussed above:
CIP Budget
|
Description |
Current |
Increase/ Decrease |
Revised |
|
Construction Expense |
$14,123,241 |
$414,631 |
$14,537,872 |
|
Ending Fund Balance - Capital Expenditure Reserve |
$2,937,391 |
($414,631) |
$2,522,760 |
COORDINATION
This report has been coordinated with the City’s Purchasing Manager and the Stadium Authority Treasurer’s and Stadium Authority Counsel’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 a budget amendment for the Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting line item in the Stadium Authority FY 2024/25 CapEx Budget to increase the budget by $414,631 from the Capital Budget Ending Fund Balance, for a total budget amount of $5,139,631;
2. Approve the Stadium Manager’s request to award a one-time agreement to AMS Electric LLC dba Prime Electric LLC in the amount of $4,736,475 to replace the lighting systems at Levi’s Stadium (Lighting Systems - Fixture Replacement of Major Outdoor Lighting/LED Retrofit/Sports Lighting CapEx Project);
3. Authorize the Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of the project, in a form substantially similar to Attachment 2; and
4. Authorize the Stadium Manager to execute change orders for the agreement up to $236,824, for a total not to exceed amount of $4,973,299.
Staff
Reviewed by: Chuck Baker, Assistant Executive Director
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Stadium Manager’s Recommendation Memo
2. Draft Agreement with AMS Electric LLC dba Prime Electric LLC