REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Stadium Manager’s Request to Approve a Second Amendment to the Agreement with Allied Universal Security Services Universal Protection Services LLP for Levi’s Stadium Event Security Services For a Month-to-Month Extension Not to Exceed Six Months
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As the Stadium Manager of Levi’s Stadium, 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, Forty Niners SC Stadium Company LLC (StadCo), and Stadium Manager.
As described in an April 4, 2017 report to the Stadium Authority Board, the Stadium Manager conducted a Request for Proposal (RFP) process for security services for pre-event, event, and post-event services for the Stadium and surrounding areas and invited six security firms to participate. Companies submitting proposals provided information on their experience, training, local management, cost and organizational approach and Landmark Event Staffing Services, Inc. (Landmark) was selected as the firm best able to perform the required scope of work.
On April 17, 2017, the Stadium Authority Board adopted Resolution No. 17-4 that consented to an Agreement between the Stadium Manager and Landmark for event security services (Attachment 1); and noted and filed a First Amendment to the Agreement to include the Stadium Authority as an additional insured under Exhibit C - Insurance Requirements (Attachment 2). The Agreement included an initial term that ended on March 31, 2022 and provided the Stadium Manager with an option to extend the term for one additional two-year period.
On March 22, 2022, the Stadium Authority Board approved the Stadium Manager’s request to exercise the option to extend the term of the Agreement with Landmark for one additional two-year period through March 31, 2024 and increase the hourly rates for certain positions during the two year extension. The Stadium Manager’s March 8, 2022 notice to Landmark is reflective of the Board’s approval (Attachment 3). In March 2023, Allied Universal Security Services Universal Protection Services LLP (Allied) acquired Landmark and assumed the rights, duties, and obligations of Landmark under the Agreement.
The Stadium Manager had planned to issue a solicitation in late 2023; however, due to the hiring and onboarding of their new Vice President, Security, Safety & Transportation Operations and the Forty Niners’ post-season success, now plans to issue a formal solicitation for event security services in March 2024 and bring forth a recommendation for a new Agreement in June 2024. Until the solicitation process is completed, an extension of the existing agreement for event security services is needed for continuity of services.
The Stadium Manager is requesting approval of a Second Amendment to the Agreement with Allied (successor in interest to Landmark) to extend the term on a month-to-month basis, beginning April 1, 2024, for up to six months (Attachment 4). The proposed Second Amendment provides the Stadium Manager the right to terminate the agreement with a thirty-day notice to the contractor and includes hourly rates of compensation and fees that are identical to the current rates outlined under the Stadium Manager’s March 8, 2022 notice to Landmark.
A Recommendation for Award Memo was submitted describing the Stadium Manager’s request and plans to implement a new solicitation in more detail (Attachment 5).
DISCUSSION
Event security services are critical to the ongoing operation of Levi’s Stadium. As described in the Stadium Manager’s Recommendation for Award Memo, security services are used on a contractual basis for ticketed and non-ticketed events held at Levi’s Stadium. The contractor supports the Stadium Manager’s in-house security operation in order to maintain best practices and requirements for NFL events, and to work in partnership with the event promotors and production teams to handle security for Non-NFL ticketed events. Security responsibilities include, but are not limited to, access control, entry screening procedures via the use of frictionless and non frictionless technology, perimeter security, personal protection, foot patrols, camera monitoring, and other security related functions specific to different events.
There are several major Non-NFL Events that are scheduled in May and June 2024 that will require event security services such as the May 4 Earthquakes vs Los Angeles Football Club, May 17 and 18 Luke Combs Concerts, and June 22 CONMEBOL Copa America Ecuador vs Venezuela.
Based on the information above, staff recommends approval of the Stadium Manager’s request to execute a Second Amendment to the Agreement with Allied (successor in interest to Landmark) to ensure continuity of security services for Levi’s Stadium events until the Stadium Manager completes the event security services solicitation and brings forth a new Agreement for Board approval. As the Santa Clara Police Department works closely with the contractor during events, staff has requested to participate in the upcoming solicitation process, which the Stadium Manager agreed to.
The Stadium Authority Counsel’s Office has reviewed the Second Amendment to the Agreement with Allied for comparison to the Stadium Authority’s customary language. Nothing in the proposed Second Amendment or 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(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
The costs associated with the Second Amendment to the Agreement with Allied (successor in interest to Landmark) are based on the compensation and fees schedule outlined under Exhibit B on a per event basis. StadCo is responsible for costs associated with NFL events. The costs for Non-NFL event security services will be borne either by the event promoter or by the revenue generated from the event.
The projected net revenues from the Non-NFL Events are accounted for in the proposed Stadium Authority FY 2024/25 Operating Budget under the Net Revenues from Non-NFL Events line item, which is being considered by the Stadium Authority Board at the March 12, 2024 meeting.
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 a Second Amendment to the Agreement with Allied Universal Security Services Universal Protection Services LLP to extend the term of the agreement on a month-to-month basis, beginning on April 1, 2024, for up to six months until the Stadium Manager enters into a new agreement for event security services, subject to the Stadium Authority Board’s approval.
Staff
Reviewed by: Chuck Baker, Assistant City Manager
Reviewed by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Agreement with Landmark
2. First Amendment to the Agreement with Landmark
3. Stadium Manager’s Notice to Landmark to Exercise 2-Year Extension Option
4. Proposed Second Amendment to the Agreement with Allied (Successor In Interest to Landmark)
5. Stadium Manager’s Recommendation for Award Memo